Shares of American Airlines Group Inc. rose to an 11-month high on Thursday after the airline reported better-than-expected quarterly results, but Cowen analyst Helane Becker warned that prices were “falling apart.”
AAL stock
increased by 43.4% in premarket trading, putting them on the right track to open at the highest price observed during the regular session hours on February 25th. on June 4.
Trading volume increased to 64.2 million shares less than an hour before opening, which is already higher than the all-day average of the last 30 days, of about 53.7 million shares.
“We believe the move is due to risk reduction in the market, and the American remains one of the most consensual short airlines in our coverage (with a short interest rate of 25% starting on 15.01.21),” Becker wrote in a note. to customers. “
Becker refers to trading dynamics that appear to have contributed to a short cut in stocks with a large number of short interest rates or to bets on which prices will fall, such as GameStop Corp. GME
and AMC Entertainment Holdings Inc. I HAVE C
Do not miss: It’s not just GameStop: Here are some of the other short-circuited actions that disappear above.
The U.S. reported earlier that it posted a net loss in the fourth quarter of $ 2.18 billion, or $ 3.81 per share, of net income of $ 414 million, or 95 cents per share, during the a year ago. Excluding non-recurring items, the adjusted loss per share was $ 3.86, exceeding the consensus of FactSet losses of $ 4.11.
Revenue fell 64% to $ 4.03 billion, but exceeded the $ 3.88 billion FactSet consensus. The load factor decreased to 63.4% from 84.7%, but exceeded expectations by 62.9%.
“As we look to next year, 2021 will be a year of recovery,” said CEO Doug Parker. “Although we do not know exactly when passenger demand will return, as vaccine distribution stops and travel restrictions are lifted, we will be ready.”
Cowen’s Becker said he did not believe the stock market rally was fundamentally determined, as the US outlook – “sequentially flat to slightly worse” – is similar to his colleagues who have already reported. (Read more about JetBlue Airways Corp. JBLU
and Southwest Airlines Co. LUV
results, also reported on Thursday.)
“It’s hard to say when the market will look at the fundamentals of the company, but we think Americans could take this opportunity to unbalance the balance sheet with a supply of equity,” Becker wrote.
US stocks rose 51.2% in the last three months to Wednesday, but fell 38.4% in the last 12 months. In comparison, the S&P 500 SPX index
it has gained 14.7% in the last three months and increased by 14.5% in the last year.